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BMW looking to save billions with cost cuts

BMW is planning a fairly extensive overhaul in a bid to recoup some its annual costs, with CEO Norbert Reithofer (pictured above) aiming to save three to four billion euro ($4 to $5.4 billion) per year to help keep the company's profit margins between eight and 10 percent, while also maintaining investments in production expansion and new tech. BMW's profit margins sat at 9.4 percent in 2013.
According to Automotive News Europe, Reithofer is none too pleased about costs at Mini and on the 1 Series, although neither AN nor its source story, from Germany's Manager Magazin, elaborate on what steps could be taken to improve losses on either project. That makes it hard to figure out just where the fat will be trimmed from.
What may happen, though, is that BMW attempts to trim 100 million euros ($135 million) from its German labor costs each year; a solution hinted at a few weeks ago by Germany newspaper Muenchner Merkur. While a dramatic cost reduction, 100 million euros still doesn't begin to even approach the savings envisioned by Reithofer.

2014 Mini Cooper

If I had a dollar for every time I heard someone from Mini refer to 'go-kart-like handling,' I'd be retired, living on a beautiful piece of coastline somewhere in the Caribbean. Perhaps even on the shores of Puerto Rico, where Mini chose to launch its latest Cooper and Cooper S hatchbacks. As with so many frequently used phrases, though, there is indeed some truth to the cliché - while the Mini Cooper has never actually handled quite like a go kart, it has always had a certain directness in its movements, reacting to steering inputs with an immediacy and fervor unlike most any other automobile meant primarily for the street.
Combine those unique driving dynamics with a sense of fun that permeates the entire brand from pre-sales marketing to the actual sales process itself and you end up with a marketplace success. As an ex-Mini owner myself (a 2009 Cooper S Convertible), I can attest to the kinship felt between fellow Mini drivers who share in the knowledge that they are having more fun than the poor appliance-driving masses sharing the highways and byways of these United States. It's no surprise that the style-conscious US continues to be the marque's single largest market year after year.
This enviable brand perception hasn't been attained without its own fair share of flaws, however. Though the quirky design and massively customizable bits and pieces that have made up the Mini brand's interior philosophy since it was reborn in 2001 have proven somewhat endearing, the Cooper Hardtop's ergonomics have always been an unmitigated disaster. Plus, this is a very small car, with a rear seat that's practically uninhabitable by adult-size occupants. While that adjective seemingly goes hand-in-hand with the brand's name, the modern Cooper has never been as ingeniously packaged as its 1959 forbearer, which offered up as much interior space as possible through innovative engineering and minimalist design. Further, parent company BMW has positioned Mini as a premium brand, so the Cooper's diminutive size has never equated to low prices. And for being such a small car, the Cooper historically hasn't been well-known for its fuel efficiency.

Mini Clubvan axed after just 50 sales

Well, that didn't last long. According to Green Car Reports, Mini has discontinued the Clubvan from its model range in the United States.
Nathalie Bauters, Mini's US communications manager, cited "relatively low demand and the effect of an excessive 25-percent tax on vehicles for commercial use (known as 'the Chicken Tax')" as the key reasons for axing the Clubman from our market, GCR reports. The 2013 Clubvan launched in the US earlier this year, and to date roughly 50 examples have been sold.
The Clubvan, based on the Clubman model, features a flat load floor behind the two front seats, with blacked-out (well, body-colored) side windows. This nifty little cargo wagon could carry up to 33 cubic feet of goods, which while useful, pales in comparison to more capacious offerings like the Ford Transit Connect van.